Justia Government Contracts Opinion Summaries

In 2011, the Wisconsin Legislature passed Act 10, a budget repair bill proposed by recently-elected Governor Walker. Act 10 significantly altered state public employee labor laws, creating two classes of public employees: “public safety employees” and all others, “general employees.” The Act prohibited general employees from collectively bargaining on issues other than “base wages,” imposed rigorous recertification requirements on them, and prohibited their employers from deducting union dues from paychecks. The Act did not subject public safety employees or their unions to the same requirements. The enactment was controversial and received nationwide publicity. Unions filed suit, challenging the limitations on collective bargaining, the recertification requirements, and a prohibition on payroll deduction of dues, under the Equal Protection Clause. They also challenged the payroll deduction provision under the First Amendment. The district court invalidated Act 10’s recertification and payroll deduction provisions, but upheld the limitation on collective bargaining. The Seventh Circuit held that the Act is valid in its entirety. Act 10 is viewpoint-neutral and, while “publicly administered payroll deductions for political purposes can enhance the unions’ exercise of First Amendment rights, [states are] under no obligation to aid the unions in their political activities.” The classifications and recertification requirement survive rational basis review. View "WI Educ. Ass'n v. Walker" on Justia Law

After the National Indian Gaming Commission decided that a 1994 consent decree involving the City of Duluth and the Fond du Lac Band of Lake Superior Chippewa was incompatible with federal law, the Band moved for dissolution of the consent decree. The City opposed the motion and the district court granted it in part and denied it in part. Both parties appealed. The Commission's change in the law governing Indian gaming made illegal what the earlier consent decree was designed to enforce. The 2011 decision by the Commission, the agency authorized by Congress to interpret and enforce the Indian Gaming Regulatory Act, 25 U.S.C. 2701 et seq., ruled that the 1994 arrangement between the City and the Band violated the Act. That determination provided ample support for the district court's decision to grant prospective relief from continued enforcement of the 1994 consent decree into the 2011 to 2036 period since continued execution of the agreement would be "no longer equitable." It was unclear what conclusion the district court would have reached without its mistaken belief that Rule 60(b)(6) was not available for consideration of potential retrospective relief. The district court abused its discretion by not examining all the relevant factors and therefore the court reversed the district court's decision denying retrospective relief to the Band for its obligations to pay rent withheld from 2009 to 2011 and remanded that question for further consideration. View "City of Duluth v. Fond Du Lac Band of Chippewa" on Justia Law

The Army issued a solicitation, noting that it intended to award contracts without discussions and that noncompliance with proposal requirements “may result in elimination of the proposal from further consideration. . . Failure to meet a requirement may result in an offeror being ineligible for an award.” The submission was required to include a cost/price proposal that was “fully complete and error free,” with supporting information, including subcontractor information. Orion submitted a proposal on the last possible date, wthout proprietary cost information for five of its eight subcontractors. Eight days later, the Army received packages allegedly containing the missing subcontractor information. The packages were returned unopened. The contracting officer rejected Orion’s proposal and denied a protest. The Army subsequently issued an amendment, notifying offerors in the competitive range that discussions were going to be held and seeking new cost/price proposals. Orion unsuccessfully attempted to resubmit. A second protest was dismissed and the Government Accountability Office affirmed. The Claims Court dismissed, holding that Orion lacked standing to bring a bid protest under 28 U.S.C. 1491(b)(1), and that, on the merits, it was a rational decision to exclude Orion from competition due to the missing information. The Federal Circuit affirmed. View "Orion Tech., Inc. v. United States" on Justia Law

Indian Harbor sought reimbursement under the National Defense Authorization Act of 1993, 106 Stat. 2315, 2371; 107 Stat. 1547, 1745 for environmental cleanup costs associated with the development of the former Marine Corps Air Station Tustin military base in southern California. The Court of Federal Claims determined that Indian Harbor failed to identify a “claim for personal injury or property” that triggered the government’s duty to indemnify and dismissed. The Federal Circuit reversed, relying on the purposes of the Act, to encourage cleanup and redevelopment of former military installations. View "Indian Harbor Ins. v. United States" on Justia Law

In 2004 Taylor, an employee of the IRS, began applying for promotions and transfers, and was rejected until she received a promotion in 2006. In 2004, after being denied a promotion, Taylor filed her first discrimination complaint and was assigned to work in a unit supervised by Shields. While working in this unit, Taylor alleges that Shields took several retaliatory actions against Taylor, including written reprimands, a three-day suspension without pay, and providing negative references for Taylor to prospective employers. Based on these alleged actions, Taylor filed additional complaints for retaliation. In 2005, the IRS and Taylor entered into a settlement agreement. Taylor subsequently alleged noncompliance by the IRS. In 2006 and 2008, the agency issued decisions concluding that although the IRS had breached the agreement, it was currently in compliance. Taylor did not appeal either decision, but filed a complaint alleging retaliation under 42 U.S.C. 2000e-16(a) and breach-of-settlement-agreement. The district court dismissed. The Sixth Circuit affirmed with respect to the breach claim, holding that Congress has not waived sovereign immunity with respect to such claims, but reversed with respect to retaliation.View "Taylor v. Geithner" on Justia Law

Erie County filed a purported class action on behalf of itself and other counties in northern Ohio, claiming that Morton and Cargill conspired to fix the price of rock salt in northern Ohio by geographically dividing the market and excluding competition, in violation of Ohio’s Valentine Act (Ohio Rev. Code 1331.01-1331.15), analogous to federal antitrust statutes, including the Sherman Act (15 U.S.C. 1-7). The district court dismissed, finding that the alleged facts were just as consistent with lawful parallel conduct as with a conspiracy. The Sixth Circuit affirmed. The alleged “failure to compete” indicates no more than a natural and independent desire to avoid a turf war and preserve profits guaranteed by regional dominance. Erie County’s concession that it was not bound by the “Buy Ohio” law defeated its claim of conspiracy evidenced by submission of sham bids. View "Erie Cnty. v. Morton Salt Co." on Justia Law

The Department of Defense issued a solicitation seeking offers for a multiple award, indefinite delivery/indefinite quantity contract for information technology services. The agency described the services as “Net-Centric Integrated Enterprise Information Technology Services,” including help desk, server, network, and applications support services. The solicitation instructed bidders to submit separate bids for the Basic Contract, Task Order 1, and Task Order 2. Every bidder, including Comint, submitted separate bids. The Department then limited the initial award to the Basic Contract and amended the solicitation. Comint acknowledged the amendment. The Source Selection Evaluation Board evaluated each proposal according to factors in the solicitation, the most important of which was “Quality/Capability.” The Board rated Comint’s proposal as “marginal,” concluding that Comint had a “moderate to high associated risk of unsuccessful performance.” The district court rejected Comint’s challenge of the award to another bidder; Comint lacked standing to challenge the solicitation or award because the agency had not erred in rejecting Comint’s bid on technical grounds. The Federal Circuit affirmed, holding that Comint failed to preserve its right to challenge the solicitation by failing to raise objections before award and that Comint has not demonstrated standing to protest the agency’s failure to award it a contract. View "Comint Sys. Corp. v. United States" on Justia Law

Ruppel sued CBS in Illinois alleging CBS’s predecessor, Westinghouse, caused the mesothelioma from which he suffers. Westinghouse had included asbestos in the turbines it supplied to the U.S. Navy, and Ruppel was allegedly exposed to it during his Naval service and later when he worked on an aircraft carrier as a civilian. CBS removed the case under the federal officer removal statute, which permits removal of certain suits where a defendant that acted under a federal officer has a colorable federal defense, 28 U.S.C. 1442(a)(1). Ruppel moved to remand and, without allowing response, the district court granted the motion. The district court concluded Ruppel only sued CBS for failing to warn about the dangers of asbestos for which there is no federal defense. The Seventh Circuit reversed. CBS’s relationship with Ruppel arises solely out of CBS’s duties to the Navy. It also has a colorable argument for the government contractor defense, which immunizes government contractors when they supply products with specifications approved by the government. View "Ruppel v. CBS Corp." on Justia Law

ASNA is an inter-tribal consortium of federally recognized tribes situated in Alaska. In 1996, 1997, and 1998, ASNA contracted with the Department of Health and Human Services, under the Indian Self-Determination and Education Assistance Act to operate a hospital. ISDA requires the government to pay costs reasonably incurred in managing the programs, 25 U.S.C. 450j-1. There have been three previous class actions concerning payments. One resulted in settlement; in two the courts denied class certification for failure to exhaust administrative remedies because claims had not first been submitted to the contracting officer. ANSA brought its claim, arguing that it was a putative class member in those suits even though it did not individually present claims to the contracting officer within the Contract Disputes Act six-year limitations period and that the limitations period was tolled while those cases were pending. The Civilian Board of Contract Appeals dismissed. The Federal Circuit reversed. The class actions involved similar issues and parties, and put the government on notice of the general nature and legal theory underlying ASNA’s claims. ASNA monitored the legal landscape, took action as appropriate, and reasonably relied upon controlling authority, holding that it did not need to exhaust administrative remedies to be a class member.View "Arctic Slope Native Assoc., Ltd. v. Sebelius" on Justia Law

Taylor owned a convenience store. In 2008, the store received authorization to redeem benefits through the Supplemental Nutrition Assistance Program, a federally funded program providing nutritional assistance to needy individuals. In 2010-2011, the USDA conducted an undercover operation. Taylor allowed undercover police officers and confidential informants working under USDA special agents to redeem SNAP benefits for cash that Taylor knew would be used to purchase illegal drugs. Taylor once exchanged a firearm for SNAP benefits. Taylor pled guilty to conspiracy to defraud the U.S., SNAP fraud, drug distribution, and being a felon in possession of a firearm. Based on the firearm conviction and Taylor’s criminal history, the probation officer recommended an enhanced sentence under the Armed Career Criminal Act, 18 U.S.C. 924(e), resulting in a Guidelines range of 188 to 235 months. The district court sentenced Taylor to 188 months. Graves, a friend of Taylor’s, worked in the store and would stand outside the store and either sell drugs to people who redeemed benefits for cash or tell them where to find drugs. Graves also sold an informant a firearm and split the proceeds with Taylor’s wife. The district court sentenced Graves to 200 months. The Sixth Circuit affirmed. View "United States v. Taylor" on Justia Law